Money transfer, virtual currency, or money service -- Fraud or scam -- Complaint #9504320
Complaint Overview
Complaint ID: 9504320
Company: Coinbase, INC.
Product: Money transfer, virtual currency, or money service
Sub-Product: Virtual currency
Issue: Fraud or scam
State: Texas
ZIP Code: 75052
Date Received: 2024-07-13T12:00:00-05:00
Date Sent to Company: 2024-07-13T12:00:00-05:00
Company Response: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Submitted Via: Web
Tags: Older American
Consumer Narrative
I was solicited by someone presenting themselves as representatives of XXXX XXXX XXXX XXXX XXXX ( later changed to XXXX XXXX XXXX XXXX to invest money in financial services or products. This investment turned out to be unsuccessful and/or fraudulent and I lost a substantial amount of money. Later, I was again solicited by a person presenting himself as XXXX XXXX as a representative of XXXX XXXX, to transfer amounts for the recovery of the previously lost investment. Such persons explained to me that the funds that were previously lost to the web-platform XXXX XXXX XXXX XXXX XXXX are now recovered and available for refund. Eventually, these claims turned to be fraud too. All payments to both Merchants were made in the way of crypto-transactions to wallets nominated as beneficiary wallets by the representatives of the unlicensed financial broker/ recovery service. All such transfers were made through my wallet hosted by Coinbase. I consider the beneficiary wallets being an integral part of the fraudulent scheme behind both XXXX XXXX XXXX XXXX I also know that under the so called travel rule, virtual assets services providers ( XXXX ) are put under certain obligations, which include collection and keeping record of information about the beneficiary wallets, especially about if the beneficiary wallet is hosted ( including which is the hosting exchange ) and/or if the beneficiary wallet is un hosted XXXX Based upon the understanding that Coinbase is acting compliant and will provide the due care towards its own wallet-holders ( such as me ), I have sent a relevant request for provision of information ( Attachment XXXX/02 Letter of Demand to Coinbase ). Such letter was solely based upon the assumption that : ( a ) Coinbase should have collected the requested information as a part of their regulatory obligations ( if it has acted XXXX compliant as it declares and advertises ) ; ( b ) neither part of the requested information requested is considered confidential and is not protected under any law ( it does not qualify under any rules as personal information ) ; and ( c ) I have justified legal interest to have knowledge about the beneficiary wallet holder and about the crypto-exchanges that possibly hosted wallets, to which I made transactions. As a matter of fact, said letter is requesting information ONLY about the name of the beneficiary person and the location ( hosting entities ) of the beneficiary wallets, where I have transferred crypto from my Coinbase hosted wallet. It is based upon the travel rule requirements imposed on XXXX XXXX XXXX UPDATED GUIDANCE FOR A RISK-BASEDAPPROACH / VIRTUAL ASSETS AND VIRTUAL ASSET SERVICE PROVIDERS ( v. XXXX ). With slight deviations in the thresholds and the required information to be recorded, similar regulations are adopted by XXXX, XXXX and XXXX. Unfortunately, Coinbase failed to provide a repose to my justified request.
Frequently Asked Questions
What is Complaint #9504320 about?
Complaint #9504320 was filed against Coinbase, INC. regarding Money transfer, virtual currency, or money service specifically about Fraud or scam. It was received by the CFPB on 2024-07-13T12:00:00-05:00.
How did Coinbase, INC. respond to this complaint?
The company responded with: "Closed with explanation". The response was timely.
What is the risk level of this complaint?
See the risk assessment section for details on this complaint's risk profile.
How do I file a similar complaint?
You can file a complaint with the CFPB at consumerfinance.gov/complaint. Select the appropriate product category (Money transfer, virtual currency, or money service) and describe your issue in detail.
Can I see other complaints against Coinbase, INC.?
Yes, visit the Coinbase, INC. company profile at readthecomplaint.com/company/coinbase-inc to see all complaints, risk scores, and analysis.
Disclaimer
This analysis is AI-generated based on publicly available CFPB complaint data. It does not constitute financial or legal advice.